Aussies to be hit with winter bill shock as meeting looms with Chris Bowen

Major energy companies are remaining tight-lipped on how much gas and electricity prices will soar as a meeting with the minister looms.

Major energy companies are remaining tight-lipped on how much gas and electricity prices will soar in Victoria.

This comes as Energy Minister Chris Bowen is set to meet with state and territory officials on Wednesday to address gas shortages and rising prices, after blaming the previous government’s near decade in power for the current problems.

Major energy companies including AGL, Energy Australia and Alinta Energy declined to comment on how much prices would surge for their customers.

An AGL spokesperson confirmed that electricity costs would increase from July 1 this year for customers on the Victorian Default Offer.

“AGL will carefully consider the changes to the VDO, as well as our cost and price movements, to determine the outcome for our market contract customers,” they said.

“Any decision to change prices is based on a detailed consideration of a range of factors including wholesale electricity prices, network changes and market conditions as well as the value we offer to our customers.”

Energy Minister Chris Bowen will meet with officials on Wednesday. Picture: Martin Ollman

The spokesperson said price changes would be finalised before the end of the month and would be implemented from August 1.

“AGL understands that rising energy prices will place additional pressure on some households and businesses, and we encourage customers to contact us to discuss the different payment options we offer, including bill smoothing and monthly billing.”

Price changes for Energy Australia customers will be announced in the next few months.

“We will inform our customers before any price changes take effect, which typically occurs between June and August each year,” an Energy Australia spokeperson said.

“It’s our job as an energy retailer to help match the right plan to our customers’ needs, including offering them innovative technologies to help them take greater control over their energy use.”

The spokesperson said customers who were struggling with their energy bills were encouraged to reach out.

An Origin Energy spokesperson said they were reviewing their prices and would inform their customers “soon”.

“We have already taken steps to support our most vulnerable customers and will be protecting everyone in our Power On hardship program from the impact of these price changes,” they said.

“As providers of an essential service, the challenge facing all energy retailers is balancing the need to recover the much higher cost of supplying energy to customers today, while being mindful of the cost of living pressures being felt across the community.”

An Alinta Energy spokesperson said the company will do its best to limit the impacts of increasing fuel costs and market volatility.

“The main driver of increasing electricity prices is rising wholesale electricity costs, which are in turn driven by factors including global fuel prices, and local production challenges causing unprecedented volatility in our electricity and gas markets,” they said.

“Our prudent risk management practices and integrated operating model means customers will be shielded from the full impact of rising fuel costs and market volatility, but won’t be completely immune.”

Despite the shortages and rising prices, Premier Daniel Andrews said it was “highly unlikely” Victoria would face a gas shortage.

“We’ve got the coldest start to winter we’ve seen for a long time and that does put some pressure on the system,” he said.